OREANDA-NEWS. May 11, 2011. The Bank of Moscow announces conclusion of an unsanctioned transaction to sell 10 748 403 shares in AS Eesti Krediidipank (EK) to a total value of 6.99 million Euros, resulting in the Bank of Moscow’s stake in the share capital of EK falling from 43.79% to 16.22%. The Bank of Moscow staff responsible for preparing such transactions was not informed about the impending sale of any part of the Bank of Moscow’s block of EK shares.

On 21 April 2011, the Bank received, by courier, a copy of a securities sale and purchase agreement dated 24 March 2011 with respect to a block of 4 576 760 EK shares. According to this agreement, the Bank of Moscow, represented by A.F. Borodin, who held the position of Bank President, sold the given block of shares to OU Firmex Inversteeringud, represented by Liivi Kluge, a close relative of the EK Chairman of the Board Andrus Kluge.

In execution of the agreement, however, the relevant corporate procedures were not observed and the agreement bears the old Bank of Moscow stamp, which is no longer effective. The Bank therefore has grounds to believe that the agreement dated 24 March 2011 was, in fact, concluded at a later date.

The management of the Bank of Moscow has applied to the Investigatory Committee of the Ministry of the Interior of Russia to investigate the reduction in the Bank of Moscow’s stake in EK and hold the guilty parties involved in withdrawing Bank of Moscow assets criminally liable within the scope of the effective legislation.